Atlantic Tele-Network, Inc. Files Rate Increase Request in Guyana for Approximately $6 Million in Additional Revenue.

ST. THOMAS, U.S. Virgin Islands--(BUSINESS WIRE)--Oct. 28, 1998-- Atlantic Tele-Network, Inc. (AMEX: ANK), announced today that its subsidiary, the Guyana Telephone and Telegraph Company Limited ("GT&T") has filed an application with the Guyana Public Utilities Commission for a permanent rate increase designed to generate approximately $6 million in additional revenue annually over a previous tariff application filed with the Commission on December 30, 1997.

The earlier application requested a rate increase designed to generate approximately $27 million in additional revenue annually. GT&T is currently operating with interim rates which were placed into effect by an order of the Guyana Public Utilities Commission dated March 27, 1998. The current interim rates represent an annual increase of about $14 million over the then existing rates.

The basis for both the original and the current applications is a 1991 agreement between ATN and the Guyana government pursuant to which ATN acquired its investment in GT&T. This agreement guarantees GT&T rates sufficient to earn a minimum return of 15% annually on its rate base. GT&T's rate base was approximately $112 million as of September 30, 1998.

Cornelius B. Prior, Jr., Chairman of the Board of ATN and GT&T, stated, "The Company has lived with interim temporary rates for eight months. Those rates are inadequate to produce the contractual minimum rate return of 15%. The increased rates are required now because of the continued decline in audiotext revenues, which have for many years subsidized the local Guyana rates. Further, the Federal Communications Commission's initiative to reduce international accounting rates threatens to reduce the Company's profitability on terminating all inbound international traffic. The value of the Guyana dollar has also declined approximately 13% relative to the U.S. dollar over the past several months. The majority of GT&T's investment in telecommunications plant has been made with U.S. dollars and future plant expansion will continue to require U.S. dollar investment. The increased rates are necessary, not only to permit GT&T to earn a reasonable rate of return on its investment, but also to provide a sound financial base for GT&T to finance the continued expansion of its facilities in Guyana."

Atlantic Tele-Network, Inc. is a telecommunications company with headquarters in St. Thomas, U.S. Virgin Islands. Its principal subsidiary, Guyana Telephone and Telegraph Company Limited, is the national telephone service provider in the Cooperative Republic of Guyana. The Company provides local, long-distance, international, Internet and cellular service to over 60,000 customers. ATN also owns 30% of Bermuda Digital Communications Ltd., which, when operational, will be the sole cellular and PCS competitor to Bermuda Telephone Company, and has a 75% interest in Digicom S.A., which provides dispatch radio, wireless data network and paging services in Haiti.

This release contains forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from these statements as a result of many factors, including matters discussed in the Company's Form 10K annual report for the fiscal year ended December 31, 1997 and its Forms 10Q for the quarters ending March 31 and June 30, 1998 which are on file with the Securities and Exchange Commission.